Wall Street tumbles on Goldman charges

08:56, April 19, 2010      

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Wall Street tumbled on Friday as Goldman Sachs was charged with fraud by the government and earnings from some major technology companies weighed on the market.

Financial sector plunged, with Goldman Sachs shares sinking about 13 percent, after the Securities & Exchange Commission charged Goldman Sachs Group with civil fraud for misleading investors about a financial product tied to subprime mortgages.

Technology sectors were also under great selling pressures as investors worried some bellwethers of the industry might face challenges in their future operations.

Google fell more than 7 percent after the searching engine giant reported first-quarter profits that fell short of some analysts' estimates while shares of Advanced Micro Devices also plummeted after the chip maker said it expects revenue in the current period to decline by as much as 5 percent from the first quarter.

Friday's economic news came mixed, which did little to provide any support for the market. The Commerce Department said before the opening bell that housing starts increased 1.6 percent to a seasonally adjusted 626,000 annual rate, higher than analysts had expected.

Separately, the University of Michigan's Consumer Sentiment index fell to 69.5 in April from March's reading 73.6, failing to hit the 75-mark that economists had been hoping for.

At market close, the Dow Jones industrial average plunged 125. 91, or 1.13 percent, to 11,018.66. The Standard & Poor's 500 index tumbled 19.54, or 1.61 percent, to 1192.13 and the Nasdaq was down 34.43, or 1.37 percent, to 2,481.26.



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